Report: Microsoft in talks for XBL Channel, Conan was suggested for it

Microsoft and the former president of Newscorp, Peter Chernin, are discussing the possibility of creating a television channel for Xbox 360 users.

According to a report over on Bloomberg, citing two sources close to the talks, the channel would be exclusive to Xbox Live, and to pay for it, Chernin suggested that MS charge an extra $1-$2 to Live's subscription fee.

The channel would be owned by both Chernin and Microsoft, and would host reruns and original shows, which is Chernin’s ways of "underscoring  Hollywood’s efforts" to convince viewers to pay for films and TV shows that are currently available on the Internet.

“Peter is talking to lots of people about lots of ideas in the digital space,” said Allan Mayer, his publicist who refused to comment on the talks with MS.

Wayne Hickey, a spokesman for Microsoft, declined comment.

The proposal Chernin has offered MS has yet to be responded to, according to the sources, but the two did meet on April 12.

During the meeting Chernin revealed that he had spoken with representatives for Conan O'Brien for the possibly of his own show on the channel, before it was revealed that he had signed with TBS.

Now THAT would have been worth the extra buck or two.